14th November, 2002
Ministry of Civil Aviation  


AIR INDIA AND INDIAN AIRLINES HAVE FINALISED HUB AND SPOKE ARRANGEMENT : SHAHNAWAZ HUSSAIN


Air India and Indian Airlines have finalized hub and spoke arrangement between them. This will enable Air India to have Indian Airlines aircrafts which are more suitable for connecting different domestic stations to the international flights of Air India from Delhi and Mumbai. This was announced by the Civil Aviation Minister Shri Syed Shahnawaz Hussain while addressing the Parliamentary Consultative Committee attached to his Ministry here today. He said this will enable Air India to deploy their own A-310 aircraft more profitably on other routes for which these bigger aircrafts are more suitable. The Minister said, a route rationalization exercise has been undertaken so that both the airlines give good competition to the foreign airlines instead of competing with each other.

The Minister pointed out that despite the setback suffered after the 11th September incident, Air India earned a profit of Rs.46.79 crore during the first half of this year. The company had earned a profit of Rs.15.44 crore during 2001-2002. Similarly Pawan Hans Helicopters has earned a profit of Rs.62.18 crore in the last fiscal. It has developed a global vision and has entered into Memorandum of Undertaking with two international helicopter operators.

The Minister said a new programme is on the anvil for upgrading the terminal buildings at some of the important non-metro airports to international standards with the use of latest designs and material. The Airports Authority is also actively assisting in establishment of the new international airports at Hyderabad and Bangalore. Shri Hussain said the legislative framework is also being suitably modified for this purpose. Besides this, a number of projects have been taken up at different airports for improvement of terminal buildings, cargo facilities, passenger facilities, runway expansion.

Participating in the discussion members of Parliament said there should be a clear-cut policy on disinvestment of Air India and Indian Airlines. Lack of clarity on the issue, has affected the fleet expansion programme of both the airlines. They demanded that both the airlines should expand their fleet, but the process should be made transparent. Expressing their concern over the hike in the price of Air Turbine Fuel (ATF) which is affecting the bottom line of the two carriers, they urged the Minister to take up the matter with the Finance Ministry to bring down the excise duty.

Members of Parliament who attended today’s meeting are Shri E. Ahmed, Shri Ram Pal Singh, Shri Ashok Argel, Shri Harpal Singh Sathi, Shri Tarlochan Singh Tur, Shri S. Murugesan, Shri Chhattrapal Singh, Shri Tarit Beran Topdar, Shri M. Padmanabham, Shri Ratilal K. Verma, Smt. Renu Kumari, Shri M.V.V.S. Murthi, Shri Dilip Kumar Gandhi, Shri Daud Ahmad from the Lok Sabha and Shri Chaudhary Harmohan Singh Yadav, Shri Ram Nath Kovind, Shri Sanjay Nirupam, Dr. L.M. Singhvi, Shri Santosh Bagrodia, Shri R.N. Arya, Shri Faqir Chand Mullana, Smt. Sarla Maheswari, Shri Dinesh Trivedi, Shri N. Jothi, Shri Praful Patel and Shri Rajeev Shukla from the Rajya Sabha.